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Highlights

[Workshop] Economic Instruments for Water Demand Management in the Mediterranean

  • Context

     

    As part of the CMI program on Water Demand Management, a regional workshop on the use of economic instruments for WDM was organized on April 12-13, 2018 in Marseille by AFD and the World Bank with the support of IRSTEA, the French Research Institute on environment and water, and in cooperation with Plan Bleu, a Regional Activities Centre of the UNEP Mediterranean Action Plan.

     

    The CMI WDM program develops an economic approach to WDM and promotes the use of economic concepts and tools to facilitate communication amongst the many stakeholders of the water sector. Thereby the Program aims to fuel policy-making and help the design and implementation of IFIs-funded projects, where water tariffs, the financing of water infrastructure, and subsidies to water savings in irrigation are particularly at stake.

    The 2017 World Bank flagship report “Beyond Scarcity: Water Security in MENA” addresses similar issues, in particular the low-value uses and low productivity of water in the region, agricultural water losses, low water tariffs, high water subsidies and weak monitoring and enforcement mechanisms undermining incentives for efficient water use . The report calls for valuing water and creating incentives for water conservation and water use efficiency, including fees, fines, permitting, and pricing; and the reallocation of water from rural to urban users and from agriculture to industry.

     

    Objectives

     

    The workshop aimed at widely sharing the analytical work of the CMI WDM Program and the World Bank and progress towards a common understanding with clients and partners from Southern Mediterranean countries.

     

    Participants

     

    The event was attended by 20 high-level decision-makers from Morocco, Algeria, Tunisia, Lebanon, Jordan, Palestine and Turkey. It benefited from the presence of Carmen Nonay, Practice Manager for the MNA Unit of the Global Water Practice at the World Bank, as well as 6 TTLs or project officers from AFD and the World Bank and selected researchers and consultants who delivered cutting-edge presentations on a variety of topics including innovative instruments such as payment for environmental services and water markets. All participants provided many significant and valuable contributions during the discussions and group works, which occupied a sizeable part of the time.

     

    Results

     

    Common grounds were established on the main key issues addressed by the workshop and it is expected by both client countries’ and IFIS’ representatives that this will help save transactions costs for project preparation and improve project performance. The strategic dialogue will be pursued and the CMI will examine how to respond to expressed specific needs especially in capacity building.

     

    Resources 

    Agenda (English, French)

    Concept Note (English, French)

    Participants 

    Speakers Bios (English, French)

    Workshop Overview (English)

     

    Presentations

    Summary of Presentations (French)

    Anders Jägerskog, World Bank (English)

    Dominique Rojat, AFD (English - French)

    Olivier Crespi-Reghizzi, AFD

    Béatrice De Abreu, BRLi

    Marielle Montginoul, IRSTEA

    Sébastien Loubier, IRSTEA

    Sébastien Loubier, IRSTEA - 2

    Raphaëlle Lavenus, BRLi

    Frédéric Maurel, AFD

    Marielle Montginoul, IRSTEA

    Thomas Binet, Vertigo LAB

    Nicholas Brozovic, University of Nebraska

    Fadi Comair, Overseas Scientific Academy and Academy of Water in France

     

    (NB: A final report – French and English versions – will be posted once available. Expected delivery end of May)